What are Hard Money Loans?

[Sacha Ferrandi]

Private money or hard money loans are loans secured by real estate that are often funded by private parties and are typically offered at higher interest rates than those offered by an FDIC-insured bank. A traditional bank or financial institution almost always has more invasive and time-consuming guidelines than hard money underwriting guidelines. While banks focus on the borrower's credit, financial stability, employment, etc., most, if not all hard money lenders are focused on the equity in the asset (real estate) that secures the loan.

Borrowers ask for hard money loans when they are unable to get traditional financing or do not have the luxury of time. This inability to get loans from banks and other financial institutions can be caused by a number of factors including poor credit, foreclosure, bankruptcy, short sale, self-employment, and foreign nationality.

Source Capital Funding is a direct,  that is able to be creative and think “outside the box” in order to get loans funded. We can offer loans to all types of borrowers and lend on many different types of real estate. Most importantly,Source Capital believes in offering loans with affordable interest rates to its clients while allowing them to pay back those loans at any time without penalty.

Source Capital is a proud member of Better Business Bureau member since 2007 and has earned the prestigious “A+ Rating” for its sound business practices. Contact us now for direct hard money loans or please call us at 888.334.6636.